Lesson 8 Unit 3 On Banking Based on

Lesson 8, Unit 3 On Banking Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials.

Banks are institutions where people save their money and receive other financial services At a bank, people – Deposit checks – Withdraw checks – Keep savings accounts – Take out loans Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

Banks and credit unions provide the same services Banks and credit unions are safe, reliable places to keep your money. Can you name any local banks or credit unions? Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

Banks and credit unions are secure Banks and credit unions are – Confidential – Insured How do you know your money is guaranteed safe? Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

Payday loan stores and check cashing outlets end up costing you a lot of money They give your money quickly, but they charge you a lot to get it. Why do you think people use these options? Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

Many people open a checking account at a bank A checking account allows you to write checks or to make payments. Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

Here is what a completed check looks like

Checks go through a predictable process in order to clear Here’s what happens once you send your check in the mail: Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

You need to track checks in your check register Check Date Number 101 102 Transaction Description 1/03 deposit 1/07 Julio Martinez 1/07 1/12 Payment/ Deposit/ Debit Credit 200. 00 Balance 200. 00 23. 00 177. 00 ATM 20. 00 157. 00 Electric Company 76. 89

The bank sends you a statement every month Debit = Money taken out of your account, like when a check you wrote to pay a bill clears Credit = Money deposited in your account, like when you deposit a paycheck Balance = The amount of money you have in your account after all of your checks and other expenses have cleared Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

You need to make sure you have enough in your checking account to cover your expenses Some people bounce checks or rely on overdraft protection too much. What does it mean to “bounce” a check? Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

You can use your ATM card to withdraw money from your linked bank account 1. Put your card in the slot 2. Type in your PIN and how much cash you want to withdraw 3. Take your cash and your receipt Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

Like ATM cards, debit cards are associated with a checking or savings account If you have money in your account but you have no cash, you can use your debit card to pay. The money comes right out of your account. It only works if you have money in there! Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

Money in a savings account earns more money, called interest The bank pays you to keep your money in a savings account. If you put $100 in, you could get $101 back. You don’t do anything to get that extra dollar—you just let the money sit in the bank without spending it. Money saved at home does not earn interest. It’s also tempting to spend it instead of saving it. Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

The interest rate tells you how much money you will earn When you open a savings account, the bank will tell you what the interest rate is. That tells you what you will earn. How much interest would you earn if you deposited $500 in a savings account earning 1% interest? For example, if you deposit $100 in a savings account earning 1% interest 1% you will earn 1% of $100, or $1 Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

If you add to your savings, they will grow quickly Save This Each Week… Without Earning Interest In 10 Years, You Will Have… $7 0% $3, 640 $14 0% $7, 280 $21 0% $10, 920 Save This Each Week… At This Interest Rate… In 10 Years, You Will Have… $7 5% $4, 720 $14 5% $9, 440 $21 5% $14, 160 What could you do to save $7 this week? Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

Online banking is growing in popularity Online banking means managing your money over the Internet instead of going to a bank branch. What are some advantages to online banking? Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking

Banks can help you reach your financial goals 1. Use a checking account to help you keep track of your spending habits and bills. 2. Put aside a little bit of every paycheck in a savings account. 3. Eventually, you will have a nest egg that will help you pay for college. = Based on the Plan Ahead educational materials made available by Gap Inc. at www. whatsyourplana. com and developed in partnership with the Pearson Foundation. Such materials are copyright © 2010– 2013 Gap Inc. and all rights are reserved. The Plan Ahead educational materials are provided “AS IS”; Gap Inc. and the Pearson Foundation are not responsible for any modifications made to such materials. Lesson 8, Unit 3 On Banking